Halftime Report The Fed, the Banks and the Market 7/16/25
Jul 16, 2025
Joe Terranova is the Chief Market Strategist for Virtus Investment Partners, while Steve Weiss is the founder of Short Hills Capital Partners, and Surat Sethi serves as CIO at Digital Asset & Resource Management. They dive into the potential impact of political drama in Washington on the markets, especially regarding changes in Federal Reserve leadership. The conversation also covers the banking landscape, detailing investment outlooks amid interest rate concerns, and explores upcoming earnings for United Airlines, alongside shifting dynamics in the EV and pharmaceutical markets.
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Fed Chair Firing Unlikely
- The president initially indicated he might fire Fed Chair Jerome Powell soon but later called it highly unlikely except for fraud reasons.
- Powell has stated he plans to finish his term and that legally he cannot be fired or demoted by the president.
Impact of Firing Powell
- Firing Powell could cause the U.S. dollar to drop and 30-year Treasury yields to spike.
- Fed Chair Powell likely to cut interest rates by September 17 if inflation data remains favorable.
Market Cautious on Fed Independence
- The market is cautious due to conflicting reports about Powell's firing and values Fed independence.
- Cutting rates too soon risks losing credibility and could harm market stability.